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25. Consider a cash flow and interest profile as shown below: year 1 2 3 CF at EOY (SR) -10,000 6,500 6,000 5,500 Interest rate (%) 8 10 The formula to be used for finding the equivalent annual worth for the above cash flow is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)+(A/P 8%, 1)(A/P 10%, 1)} c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)} CEDI to a

25. Consider a cash flow and interest profile as shown below: year 1 2 3 CF at EOY (SR) -10,000 6,500 6,000 5,500 Interest rate (%) 8 10 The formula to be used for finding the equivalent annual worth for the above cash flow is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)+(A/P 8%, 1)(A/P 10%, 1)} c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)} CEDI to a

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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25. Consider a cash flow and imterest profile as shown below: 2 3 year 1 CF at EOY (SR) -10,000 6,500 6,000 5,500 Interest rate (%) 10 The formula to be used for finding the equivalent annual worth for the above cash flow is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)+(A/P 8%, 1)(A/P 10%, 1)} c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)}
Transcribed Image Text:25. Consider a cash flow and imterest profile as shown below: 2 3 year 1 CF at EOY (SR) -10,000 6,500 6,000 5,500 Interest rate (%) 10 The formula to be used for finding the equivalent annual worth for the above cash flow is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)+(A/P 8%, 1)(A/P 10%, 1)} c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)}
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